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Detecting Preventing Fraud in Accounts Payable

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Detecting Preventing Fraud in Accounts Payable

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    1. 8/7/2012 Detecting & Preventing Fraud in Accounts Payable Robert H. Sells Broniec Associates

    2. 8/7/2012 Fraud is the fastest growing crime segment in America Our task is to harden the target by using every tool and every skill and every expert at our disposal.

    3. 8/7/2012 Our goal has to be to prevent fraud in each of our accounts payable departments. Hiring Training Auditing Securing Observing Managing

    4. 8/7/2012 Case Studies The Charlotte Observer $2 Million - 7 Yrs. Collusion 22-year employee WebMD $65,000 1 instance (attempted) Caught by Accounts Payable !

    5. 8/7/2012 Clues, Rules Broken, & Lessons Learned in The Charlotte Observer case Johnson ordered, received, & approved payment of goods Budget variances ignored - $50,000/mo. over 7 yrs.!

    6. 8/7/2012 Clues, Rules Broken, & Lessons Learned in The Charlotte Observer case Rising costs not suspected business was good Poor inventory controls Lots of receipts, no product

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    9. 8/7/2012 What went wrong? Systems People Procedures Discipline Masking Collusion Management

    10. 8/7/2012 How much control is enough? Too much? Your department has to operate efficiently People are not the enemy Be firm, fair, and friendly Why not the best?

    11. 8/7/2012 Who else can help? Your bank Your internal auditors Your IT department Your associates Your systems & procedures Your check printer Your external Audit Professionals

    12. 8/7/2012 Your Bank Positive Pay One of the MOST effective fraud deterrents Whatever it costs, get it!

    13. 8/7/2012 Your Internal Auditors Consistent Thorough Observant

    14. 8/7/2012 Your IT Department IT is there to serve Users not the other way around Request ad hoc reports and use them You are in charge of A/P not them

    15. 8/7/2012 Your Associates Respect Intuition Listen to your associates Talk to your associates

    16. 8/7/2012 Your Systems & Procedures Review the settings of your system periodically Guard your vendor master Review your checks Every time ! Mix high tech with high touch

    17. 8/7/2012 Your check printer Be aware of & use the latest innovations Have an external expert review your systems, procedures, and check stock Question everything

    18. 8/7/2012 Your External Audit Professionals Let the experts review your operation Statistical analysis Dr. Frank Benford & Benfords Law Dr. Mark Nigrini The Frank Factor

    19. 8/7/2012

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